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Non-dilutive funding is a type of financing that does not require the sale of your startup's equity. In other words, it doesn't dilute the ownership stakes of the company's shareholders. It can come from several sources such as grants, loans, crowdfunding, or revenue.
This type of funding can be attractive because it allows founders and early investors to retain control and ownership of the business. However, non-dilutive funding also typically comes with its own set of challenges and considerations. For example, loans must be repaid with interest, and grants often have restrictions on how the money can be used.
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